The country’s first contract under Toll Operate Transfer (TOT) model was awarded in March 2018. Ashoka Buildcon as an O&M partner, along with Macquarie Asia Investment Fund (MAIF 2 Investments India 2), bagged the Bundle-1 comprising nine national highway stretches.
Four companies, namely Brookfield Asset Management, Macquarie, IRB Infrastructure and consortium of Roadis Infrastructure Holding and National Investment and Infrastructure Fund (NIIF) had participated in the tendering process.
The tender for the bundle was floated on 6 October 2017 comprised Siddhantham to Gundugolanu section, Diwancheruvu to Siddhantham section, Annavaram to Diwancheruvu section, Ankapalli to Annavaram (Tuni) section, Icchapuram to Narasannapeta section, Puintola to Icchapuram section, Bamanbore to Garamore section Garamore to Samakhiyali section, and Porbandar-Jetpur section for a total length of 680.64 km.
Macquarie bagged the bundle by quoting a bid price of Rs 9,681.5 crore against the NHAI’s estimated concession value of Rs 6,258 crore.
Ashoka Buildcon will look after the operation and maintenance of the project for 30 years. EPC for the first two years is Rs 1,025 crore.
The tenders for next bundle under this model is expected to be floated in April 2018.
In August 2016, the Cabinet gave nod to the National Highways Authority of India (NHAI) to monetize public funded NH projects which are operational and are generating toll revenues for at least two years after the Commercial Operations Date (COD) through the Toll Operate Transfer (TOT) Model.
Under the TOT model the right of collection of user fee i.e toll in selected operational NH stretches constructed through public funding is allocated for a specific time period to developers or investors against upfront payment of a lump-sum amount to the government. Also, during the tenure of the contract, the operations and maintenance (O&M) responsibility will remain with the assigned developer.